Thursday, 19 July 2012

July 19, 2012 Financial Market Summary

DJIA gained 0.8% to settle at 12,908.7. NASDAQ soared 1.1% to close at 2,942.6. S&P 500 advanced 0.7% to end at 1,372.8.
Nikkei 225 index is trading 0.8% higher at 8,792.4.
FTSE 100 added 1.0%, to settle at 5,685.8.
FTSEurofirst 300 index closed 1.2% higher at 1,053.7.
In Asia, crude oil for August delivery is trading 0.4% or $0.37 higher at $90.24 per barrel.
At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5664, slightly lower against the EUR at €1.2741, and 0.2% lower against the JPY at ¥123.06.
US Market Snapshot
US markets extended their gains for the second straight session yesterday, after domestic housing starts rose at its fastest pace in over three years and as a string of upbeat corporate earnings buoyed market sentiment. Persistent hopes for central bank’s intervention to spur the economy also underpinned the rally. Intel rallied 3.3%, as its second-quarter profit came well ahead of market expectation, albeit scaling back its annual sales forecast, while EMC and VMware rallied 9.4% and 12.1%, respectively, as both companies gave strong preliminary revenue forecast for the second quarter. Amphenol jumped 14.8%, after its second-quarter results surpassed market expectation and as it lifted its earnings outlook for 2012. Honeywell International rose 6.7%, as it reported an 11% rise in second-quarter profit.
DJIA gained 0.8% to settle at 12,908.7. NASDAQ soared 1.1% to close at 2,942.6. S&P 500 advanced 0.7% to end at 1,372.8.
Asian Market Snapshot
Asian markets are trading higher this morning, amid speculation that China would take more measures to boost economic growth and following upbeat corporate earnings in the US and the UK. In Japan, Yaskawa Electric paced gains, as it raised its first-half profit forecast. Tokyo Electric Power is traded higher, amid reports that it might raise its electricity rates for households. In Hong-Kong, PetroChina paced gains after the company announced that it had signed a MOU with African Petroleum for a strategic investment in Africa. In South Korea, Samsung Electronics gained value, after a judge ordered Apple to publish a notice to a ruling that Samsung did not copy designs for the iPad.
Nikkei 225 index is trading 0.8% higher at 8,792.4. Hang Seng index is trading 1.1% higher at 19,453.8. Kospi index is trading 1.4% higher at 1,819.7.
UK Market Snapshot
UK markets closed higher yesterday, boosted by an unexpected drop in UK unemployment, and as Bank of England’s meeting minutes showed policy makers might reconsider the case for an interest-rate cut. Aggreko gained 3.5%, after the company opened a gas-fired power plant in Mozambique along with South Africa’s Shanduka Group. Tullow Oil advanced 3.3%, after the company encountered oil at its Wawa-1 well offshore Ghana. Ashmore Group rose 2.6%, after Goldman Sachs upgraded its recommendation on the stock to “Buy” from “Neutral”. Fresnillo climbed 1.6%, after it reported a record 15.0% increase in its second-quarter gold production. Homeserve rallied 12.0%, after the Daily Telegraph reported that the company has been approached by private-equity buyers. Capital Shopping Centres Group gained 2.4%, after Barclays upgraded the stock to “Overweight”.
FTSE 100 added 1.0%, to settle at 5,685.8. FTSE 250 rose 0.6 %, to close at 11,085.7.
European Market Snapshot
Other European markets rallied yesterday, following an unexpected drop in UK’s unemployment and after minutes of the Bank of England’s latest meeting showed that it might reconsider the case for an interest-rate cut. Credit Suisse gained 4.5%, after the company announced measures to cut costs and boost capital by $8.9 billion, while Bankia soared 14.4%, after Spain’s Economy Minister, Luis de Guindos, mulled to introduce legislation to prevent banks from selling preferred stocks to retail investors. Nordea rose 2.4%, after the company reported a rise in its second-quarter earnings. Energy stock, Total added 1.9%, tracking higher crude oil prices. Drug maker, Sanofi climbed 3.6%, as the company announced research collaboration with Brigham and Women’s Hospital focused on type 1 diabetes.
FTSEurofirst 300 index closed 1.2% higher at 1,053.7. German DAX Xetra 30 rose 1.6% to 6,684.4. French CAC-40 closed 1.8% higher at 3,235.4.
Commodities
In Asia, crude oil for August delivery is trading 0.4% or $0.37 higher at $90.24 per barrel. Yesterday, crude oil for August delivery gained 0.7% or 65 cents to settle at $89.87 per barrel, after the Energy Information Administration (EIA) reported that US crude oil inventories dropped 800,000 barrels to 377.4 million in the week ended 13 July and after data showed US housing starts rose better-than-expected in June. However, earlier in the session, crude oil was trading lower, as the US Federal Reserve Chairman Ben Bernanke again failed to offer any clear hint of further monetary stimulus in his testimony to the Congress.
Gold for immediate delivery is trading 0.3% higher today, at $1,578.43 per ounce. Gold for August delivery declined 1.2% or $18.70, to settle at $1,570.80 per ounce yesterday, as the dollar appreciated against the major currencies, after the US Chairman, Bernanke, failed to give signal of a fresh round of quantitative easing, decreasing demand for the precious metal as a hedge against inflation.
Currencies
At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5664, slightly lower against the EUR at €1.2741, and 0.2% lower against the JPY at ¥123.06.
The EUR is trading 0.1% higher against the USD at $1.2294. The EUR is trading 0.2% lower against the JPY at ¥96.58.
The JPY is trading higher against the most of its major counterparts, as escalating worries about the implementation of measures to control eurozone debt crisis boosted demand for the safe haven currency. German lawmakers are due to vote on a bailout for Spanish lenders in a special session of the lower house today.
The USD slid against the AUD, amid speculation a US report today that might show first-time claims for jobless benefits climbed
Yesterday, the EUR ended lower against the USD, following dismal comments from German Chancellor Angela Merkel, renewing concerns about the eurozone debt crisis. The USD also rose against the EUR, following upbeat US housing starts data and after the Fed Beige Book indicated that the US economy expanded at a “modest to moderate” pace last month.
The GBP closed lower against the USD, after the Bank of England (BoE) stated that interest-rate cuts might be appropriate. According to the minutes of BoE meeting held on 4-5 July, BoE policymakers raised the size of economic stimulus by £50 billion in July and maintained the interest rate unchanged at a record low 0.50%.
The CAD ended higher against the USD, on the back of higher crude oil prices and after the Bank of Canada, in its monetary policy report, stated that consumers and business investment would lead modest economic growth through 2014.

No comments:

Post a Comment